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Hynix Semiconductor Licenses ISi’s Z-RAM Memory

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Technology for DRAM Products

Technology slashes DRAM size and cost

Eight-figure deal changes the face of the DRAM world

SANTA CLARA, Calif. and ICHEON, Korea — Aug 13, 2007 — Innovative Silicon Inc.
(ISi), the developer of Z-RAM® high-density memory intellectual property (IP), and Hynix
Semiconductor Inc. (KRX: HynixSemi) today announced that Hynix has agreed to license
ISi’s Z-RAM for use in its DRAM chips. Z-RAM-based DRAMs will use a single transistor
bitcell – rather than a combination of transistors and capacitor elements – representing
the first fundamental DRAM bitcell change since the invention of the DRAM in the early
1970s. Hynix has received the first-mover opportunity to bring Z-RAM to the DRAM
market; and to ensure this advantage, the two companies have committed considerable
engineering resources to work side-by-side on the program.

Z-RAM was initially developed as the world’s lowest-cost embedded memory technology
for logic-based ICs such as mobile chipsets, microprocessors, networking and other
consumer applications. The technology was first licensed, in December 2005, by AMD
for upcoming microprocessor designs. Now, the engagement with Hynix positions Z-RAM
to become the lowest-cost memory technology in the greater than $30B memory market.
“Z-RAM promises to provide an elegant approach to manufacture dense DRAMs on
nanometer processes,” said Sung-Joo Hong, VP of R&D Division at Hynix. “We see the
potential to create a new platform of products based on ISi’s innovation of Z-RAM that will
help us maintain and grow our leadership position in the memory market.”

“Hynix’s decision to collaborate with ISi is additional validation of the strength and
commercial viability of our Z-RAM memory technology, particularly since Hynix is a
dominant player in the memory IC market and its products are used in a vast array of
electronic devices, including personal computers, servers, workstations, graphic cards, as
well as handheld devices, such as mobile phones, MP3 players and digital cameras,”
noted Mark-Eric Jones, ISi CEO. “Memory chips built using ISi’s Z-RAM technology will
be much smaller and cheaper to manufacture. We are looking forward to working with
Hynix on its next generation of DRAM chips, and to bringing tremendous performance
and usability advantages to end-users.”

Commented Jeff Lewis, VP marketing at ISi: “We believe that this is a major milestone for
ISi and Hynix. Z-RAM will have a profound impact on the way DRAMs are designed and
manufactured. Since the DRAM industry sold more than $33 billion worth of product in
2006, these developments will, in turn, significantly affect the electronics industry as a
whole.”

ISi’s Z-RAM stands apart from today’s standard DRAM and SRAM solutions as its single
transistor (1T) bitcell architecture is the world’s smallest memory cell, making it the
highest density, and therefore world’s lowest-cost semiconductor memory solution.
Z-RAM’s one transistor memory bitcell is made possible by harnessing the Floating Body
Effect (FBE) found in circuits fabricated using SOI (silicon-on-insulator) wafers.
Moreover, since Z-RAM takes advantage of a naturally-occurring SOI effect, Z-RAM does
not require exotic process changes to build capacitors or other complex structures within
the memory bitcell.

About Innovative Silicon
Innovative Silicon Inc. (ISi) delivers ultra-high density memory IP for embedded SoC,
MPU and portable consumer applications requiring low power, high density and high
speed. Endorsed by IEEE Spectrum Magazine in January 2007 as the ‘winning’
semiconductor technology, and again in April 2007 by winning its ACE award for
Emerging Technology, ISi's Z-RAM® memory offers up to twice the density of embedded
DRAM and is up to five times denser than embedded SRAM. The company closed its first
round of VC funding in 2003, completed its first 90nm megabit Z-RAM memory designs in
2004, its first 65nm designs in 2005 and its first 45nm designs in 2006. With more than 20
patents already granted, Z-RAM®’s unique single-transistor architecture is the world’s
lowest cost semiconductor memory solution. The company is incorporated in the USA
 
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